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Article: Economic Stimulus Act: incentive for purchasing manufacturing equipment.(INDUSTRY NEWS)
- Article from:
- Quality
- Article date:
- July 1, 2008
CopyrightCOPYRIGHT 2008 BNP Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WASHINGTON, D.C. -- In addition to providing stimulus payments to individuals, the Economic Stimulus Act of 2008 provides incentives to businesses. These incentives include a 50% depreciation allowance for 2008 purchases and an increase in the small business expensing limitation for tax years beginning in 2008.
Purchasing new production equipment could save companies thousands on their 2008 tax bill.
Before the 2008 Economic Stimulus Act, a business could deduct up to $128,000 of the cost of qualified equipment purchases. If the business purchased more than $510,000 of qualified equipment during the year, this amount was reduced. Because of the 2008 ...